Global H2 Green Steel Market Size Likely to Grow at a CAGR of 4.5% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the global H2 Green Steel Market will grow at a CAGR of 4.5%. In 2024, the market size is projected to reach a valuation of USD 252.7 Billion. By 2033, the valuation is anticipated to reach USD 375.5 Billion.

H2 Green Steel Market: Growth Factors and Dynamics

• Climate Imperatives: Rising commitments to carbon reduction and climate targets make the H2 Green Steel market more robust. This is changing the disastrous competition in the industry and investment decisions by many industry players due to regulations and policies supporting low-carbon steel production.

• Technological Advancements: Owing to the development of hydrogen-based reduction technologies, there have been advancements in the production and economic feasibility of H2 green steel. The new developments in electrolysis, renewable hydrogen production, and direct reductions are essential factors creating opportunities for the market’s growth and competitiveness.

• Market Expansion: The H2 Green Steel market is broadening due to its increasing applicability in the automotive, construction, and renewable energy industries. Consumer demand and the rising demand for materials that adhere to ever-higher global environmental standards support this.

• Investment Influx: H2 Green Steel projects are being fast-tracked due to substantial funding from the government, industry players, and funding agencies. These funds assist in research, demonstration, and building of commercial facilities promoting innovative ideas and market growth.

• Consumer Demand: With increased knowledge and a shift in purchasing towards more responsible product offerings, the manufacturing and industry are attempting to embrace H2 Green Steel solutions. This trend is affecting how organizations think about supply chains, product differentiation, and sustainability policies in markets worldwide.

• Policy Support: The market’s expansion is mainly due to policies and incentives that encourage the establishment of hydrogen infrastructure and the ensuing production of green steel. These policies may include grants, subsidies, tax waivers, or other interventions, such as carbon pricing, that encourage using low-carbon steel technology.

• Supply Chain Integration: The coupling of hydrogen supply chains with steelmaking processes is a design requirement for enabling the H2 Green Steel technology to be deployed at scale and made sustainable. This includes the latest developments in the networks for the transport, storage, and distribution of hydrogen, making access to renewable hydrogen for steelmakers globally.

• Collaborative Initiatives: Efforts to increase H2 Green Steel production rely on the cooperation of governments, research, and industry. Mechanisms such as joint ventures, consortia, and partnerships promote a culture of high innovation, knowledge, and adoption of best practices in the production of green steel, escalating the market and its competitiveness.

H2 Green Steel Market: Partnership and Acquisitions

• In 2023, Mercedes-Benz and H2 Green Steel entered a binding agreement to supply approximately 50,000 tons of steel annually produced at their facility in Boden, northern Sweden.

• In 2022, H2 Green Steel and BMW Group signed an agreement to supply CO2-reduced steel, incorporating recycling and end-of-life management measures into their partnership.

• In 2022, Kobe Steel launched “Kobenable Steel,” Japan’s first blast furnace product designed to achieve very low CO2 emissions during the ironmaking process. This marks a significant advancement in sustainable steel production within the industry.

Report Scope

H2 Green Steel Market: COVID-19 Analysis

COVID-19’s influence on the H2 green steel industry has been particularly negative owing to the interruption of supply chains, labour shortages, and postponement of heavy engineering works. The situation worsened as the coronavirus spread, and foreign governments declared lockdowns, including, in certain cases, travel restrictions, which hampered the supply of some materials essential in making H2 green steel, like iron ore and hydrogen.

Also, the operational capacities of manufacturing plants were limited, or the facilities were shut down entirely because of the reduced availability of the skilled workforce, which further delayed production and development activities within the green steel industry. These economic factors caused by the pandemic also declined global investments as companies and shareholders reduced or postponed their profiles in developing green hydrogen resources.

Several large projects related to advanced capital expenditures, including the projects on green steel manufacture, were shifted to the waiting position. Moreover, the greening steel transition plans required the construction of downstream infrastructure, such as renewable energy and hydrogen plants, which were delayed because of construction and funding difficulties.

List of the prominent players in the H2 Green Steel Market:

• SSAB
• Tata Steel
• ArcelorMittal
• Nippon Steel Corporation
• Thyssenkrupp AG
• Voestalpine AG
• Posco
• Baowu Steel Group
• JFE Steel Corporation
• Hybrit Development AB
• Salzgitter AG
• Celsa Group
• Liberty Steel Group
• JSW Steel
• Aperam
• Others

The H2 Green Steel Market is segmented as follows:

By Steel Type

• Stainless Steel
• High-Strength Steel

By Production Technology

• Electric Arc Furnace (EAF)
• Hydrogen-based Reduction
• Bioenergy Reduction
• Others

By Application

• Construction
• Automotive
• Consumer Goods
• Energy
• Others

By End-Users

• Heavy Machinery
• Packaging
• Rail and Shipbuilding
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America